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Exhibit 25-1 ​ Refer to Exhibit 25-1. Which of the Following Statements Is

Question 58

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Exhibit 25-1 ​
Exhibit 25-1 ​   Refer to Exhibit 25-1. Which of the following statements is false ? A) If marginal-cost pricing is imposed on the natural monopoly firm, the firm takes a loss. B) If average-cost pricing is imposed on the natural monopoly firm, the firm earns zero economic profits. C) If the natural monopoly firm produces Q<sub>3</sub> units of output and charges P<sub>3</sub> per unit, the firm earns zero economic profits. D) If the natural monopoly firm produces Q<sub>2</sub> units of output and charges P<sub>2</sub> per unit, the firm earns zero economic profits.
Refer to Exhibit 25-1. Which of the following statements is false ?


A) If marginal-cost pricing is imposed on the natural monopoly firm, the firm takes a loss.
B) If average-cost pricing is imposed on the natural monopoly firm, the firm earns zero economic profits.
C) If the natural monopoly firm produces Q3 units of output and charges P3 per unit, the firm earns zero economic profits.
D) If the natural monopoly firm produces Q2 units of output and charges P2 per unit, the firm earns zero economic profits.

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